IMPROVED ORE SORT RESULTS BOOST MOLYHIL

RNS Number : 9359U

Thor Mining PLC

30 October 2017

 

30 October 2017

THOR MINING PLC

IMPROVED ORE SORT RESULTS BOOST MOLYHIL

The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR) are pleased to announce a step forward in the potential commercial enhancement of Molyhil, the Company's Australian tungsten and molybdenum project in the Northern Territory.

Ore sorting testwork has been progressively undertaken with the objective of increasing the portion of the Molyhil known mineralisation that could be economically extracted to produce tungsten and molybdenum concentrates.  Results from this recently completed work have been reviewed internally and the Board expects that this testwork could lead to an enhancement of the economic potential and therefore implicit underlying value of the Molyhil project.

Highlights:

·      Thor has previously published a Definitive Feasibility Study demonstrating a project NPV of A$67million (approximately UK£39million), further details for which are available on the Company's website (refer to the Company's announcement of 12 January 2015). Outcomes from ore sorting testwork were included in this study;

·      Recent ore sorting testwork has achieved substantially improved outcomes which the Company believes have the potential to materially increase the portion of the Molyhil resource estimate which is economic to recover;

·      An improvement in rejecting waste material, to 41% of total sample mass, from ore sorting, with the latest trials on ore averaging 0.23% WO₃. This compares with previous sorting testwork, achieving waste rejection of between 15% and 25% of the total sample mass, on ore grading between 0.35%WO₃ and 0.56% WO₃.

Mr Mick Billing, Executive Chairman, commented: 

"Thor is taking steps towards accelerated commercialisation of its key projects, including Molyhil."

"The impact of the ore sorting work undertaken, all other assumptions unchanged, is potentially to increase that portion of the mineral resource estimate which converts to the ore reserve, and therefore to increase the potential mine life of Molyhil."

"Increased conversion to ore reserve and an extended mine life, if applied to Molyhil, could materially enhance the value proposition of this project, at a time when there is increasing vibrancy in the tungsten sector, particularly with the rising tungsten commodity price in 2017."

"We have previously signalled that we have identified cost reductions in both operating and capital cost estimates, and these will be incorporated, with these sorting results, in a review of the Open Cut Ore Reserve for Molyhil, the results of which we expect shortly, and will be announced when available."

Further Information:

Notwithstanding the robust economics already demonstrated, the Company has undertaken a number of initiatives to further enhance this project from a commercial perspective.  An important element of this has been detailed work to enhance the ore sorting technology proposed for Molyhil to maximise the return available from existing known mineralisation.

The ore sorting testwork, consistent with the Company's commercialisation strategy, is aimed at improving the mine life and economic returns for the Molyhil Tungsten project in the Northern Territory of Australia. The process involved testing Molyhil mineralisation of a lower tenor than prior testwork, with outcomes demonstrating a substantially higher gangue material rejection rate.

Previous ore sorting testwork on ore grading between 0.35%WO₃ and 0.56% WO₃, had generated waste rejection of between 15% and 25% of the total sample mass.

Latest sorting trials on ore grading 0.23% WO₃ resulted in a rejection of waste material representing 41% of the total mass.

Enquiries:

Mick Billing	[phone]	Thor Mining PLC	Executive Chairman
Ray Ridge	[phone]	Thor Mining PLC	CFO/Company Secretary
Colin Aaronson/ Daniel Bush/ Richard Tonthat	[phone]	Grant Thornton UK LLP	Nominated Adviser
Elliot Hance	[phone]	Beaufort Securities Limited	Joint Broker
Nick Emerson / Andy Thacker	[phone]	SI Capital Ltd	Joint Broker
Tim Blythe/ Camilla Horsfall	[phone]	Blytheweigh	Financial PR

Updates on the Company's activities are regularly posted on the Thor Mining website: www.thormining.com, which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.

Competent Person's Report

The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who holds a BSc in applied geology and an MSc in natural resource management and who is a Member of The Australasian Institute of Mining and Metallurgy.  Mr Bradey is an employee of Thor Mining PLC.  He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 

About Thor Mining PLC

Thor Mining PLC is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.

Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in 2015¹ suggested attractive returns. Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated Resources Estimate² on 1 of the 4 known deposits.

Thor is also acquiring up to a 60% interest Australian copper development company Environmental Copper Recovery SA Pty Ltd, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery.

Thor also holds a production royalty entitlement from the Spring Hill Gold project³ of:

·      A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and

·      A$14 per ounce of gold⁴ produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.

Notes

·        ¹ Refer ASX and AIM announcement of 12 January 2015

·        ² Refer AIM announcement of 22 May 2017 and ASX announcement of 23 May 2017

·        ³ Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016

·        ⁴ At the date of this announcement gold is trading at approximately A$1,660/oz

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. ·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. ·    Aspects of the determination of mineralisation that are Material to the Public Report. ·    In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	·    Sample material for the ore sorting test work was sourced from residual stockpiles at the Molyhil mine site. ·    No resource or exploration potential is inferred or implied from the sample or the reported test work.
Drilling techniques	·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	·    No drilling was undertaken or reported.
Drill sample recovery	·    Method of recording and assessing core and chip sample recoveries and results assessed. ·    Measures taken to maximise sample recovery and ensure representative nature of the samples. ·    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	·    No drilling was undertaken or reported.
Logging	·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. ·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. ·    The total length and percentage of the relevant intersections logged.	·    No drilling was undertaken or reported. ·    The sample collected was visually identified as scheelite (tungsten trioxide) mineralised skarn but otherwise not logged in any way.
Sub-sampling techniques and sample preparation	·    If core, whether cut or sawn and whether quarter, half or all core taken. ·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. ·    For all sample types, the nature, quality and appropriateness of the sample preparation technique. ·    Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. ·    Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. ·    Whether sample sizes are appropriate to the grain size of the material being sampled.	·    The entire sample was crushed and screened into three sizes (-9.5mm, 9.5 - 25mm, +63mm) Only the coarser two fractions were subject to the ore sorting test work. ·    The ore sorting trial used x-ray transmission to distinguish and segregated mineralised from un-mineralised particles. ·    Following sorting, all material including the unsorted fines was sent for assay.
Quality of assay data and laboratory tests	·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. ·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. ·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	·    Prepared samples were digested using sodium peroxide fusion which is considered a total digest. ·    Laboratory quality control procedures were implemented including blanks, certified standards and duplicates.
Verification of sampling and assaying	·    The verification of significant intersections by either independent or alternative company personnel. ·    The use of twinned holes. ·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. ·    Discuss any adjustment to assay data.	·    No drilling and no verification was undertaken. ·    Data was received electronically and checked against anticipated results. ·    Reported results were based on mass weighted average grades of individual assays.
Location of data points	·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. ·    Specification of the grid system used. ·    Quality and adequacy of topographic control.	·    The test work is based upon a bulk sample from residual Molyhil stockpile material. No specific sample location is available.
Data spacing and distribution	·    Data spacing for reporting of Exploration Results. ·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. ·    Whether sample compositing has been applied.	·    No resource or exploration potential is inferred or implied from the sample or the reported test work.
Orientation of data in relation to geological structure	·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. ·    If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	·    No resource or exploration potential is inferred or implied from the sample or the reported test work.
Sample security	·    The measures taken to ensure sample security.	·    Samples kept within secure storage facilities.
Audits or reviews	·    The results of any audits or reviews of sampling techniques and data.	·    No audits or reviews.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. ·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	·    The Molyhil project is situated within ML23825 100% Thor Mining plc. ·    ML23825 is in good standing.
Exploration done by other parties	·    Acknowledgment and appraisal of exploration by other parties.	·    No exploration activities or results reported.
Geology	·    Deposit type, geological setting and style of mineralisation.	·    Contact metamorphic skarn hosted scheelite and molybdenite.
Drill hole Information	·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. ·    If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	·    No drilling was undertaken or reported.
Data aggregation methods	·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. ·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. ·    The assumptions used for any reporting of metal equivalent values should be clearly stated.	·    Averages of individual samples were weighted by mass.
Relationship between mineralisation widths and intercept lengths	·    These relationships are particularly important in the reporting of Exploration Results. ·    If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. ·    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	·    No drilling was undertaken or reported.
Diagrams	·    Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	·    No drilling was undertaken or reported.
Balanced reporting	·    Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	·    No exploration results are reported.
Other substantive exploration data	·    Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	·    No exploration results are reported.
Further work	·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). ·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	·    Results of the ore sorting test work will be used in revising the Molyhil Ore Reserve.

 

 

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